Assistance program
Clean Water State Revolving Fund
$21.3 Billion committed in FY2018–FY2026
- Agency
- Environmental Protection Agency, Environmental Protection Agency
- Assistance
- Formula Grants
- CFDA number
- 66.458
- What it does
- To create State Revolving Funds (SRFs) through a program of capitalization grants to States which will provide a long-term source of State financing for construction of wastewater treatment facilities and implementation of other water quality management activities. Capitalization grants are available to each State for the purpose of establishing a Clean Water SRF for providing assistance for: (1) construction of publicly owned wastewater treatment works; (2) implementation of nonpoint source management activities included in State Plans developed pursuant to Section 319; (3) development and implementation a National Estuary Program comprehensive conservation and management plan under Section 320; (4) the construction, repair, or replacement of decentralized wastewater treatment systems that treat municipal wastewater or domestic sewage; (5) measures to manage, reduce, treat or recapture stormwater or subsurface drainage water; (6) any municipality or intermunicipal, interstate, or State agency for measures to reduce the demand for publicly owned treatment works capacity through water conservation, efficiency or reuse; (7) the development and implementation of watershed projects meeting the criteria set forth in section 122; (8) any municipality or intermunicipal, interstate, or State agency for measures to reduce the energy consumption needs for publicly owned treatment works; (9) reusing or recycling wastewater, stormwater, or subsurface drainage water; (10) measures to increase the security of publicly owned treatment works; (11) any qualified nonprofit entity, as determined by the Administrator, to provide assistance to owners and operators of small and medium publicly owned treatment works to plan, develop, and obtain financing for eligible projects under section 603(c), including planning, design, and associated preconstruction activities and to assist such treatment works in achieving compliance with the Clean Water Act (CWA); and (12) any qualified nonprofit entity, as determined by the Administrator, to provide assistance to an eligible individual (as defined in subsection (j))— (A) for the repair or replacement of existing individual household decentralized wastewater treatment systems or in a case in which an eligible individual resides in a household that could be cost effectively connected to an available publicly owned treatment works, for the connection of the applicable household to such treatment works. The program supports the Agency's strategic goal of providing clean and safe water. The Infrastructure Investment and Jobs Act (IIJA), 2021, (Public Law 117-58), makes available additional capitalization grants to each state for the purpose of providing assistance through the Clean Water SRF to: (1) activities identified above and (2) activities identified above for projects that address emerging contaminants. The capitalization grant is deposited in the State's SRF, which is used to provide loans and other types of financial assistance, to local communities, intermunicipal and interstate agencies, and other eligible entities as described in Title VI of the Clean Water Act. Division N of the Consolidated Appropriations Act, 2023, Public Law 117-328 also includes $665.2 million in supplemental funding for the CWSRF, available only to states or territories in EPA Regions 2 and 4 for treatment works impacted by Hurricanes Fiona or Ian. A maximum of four percent of the grant amounts, $400,000 each year, or 1/5 percent per year of the current valuation (total net position) of the fund may be used by the States for the cost of administering the SRF. States determine priorities for funding within their State in accordance with the CWA. For the 51 State CWSRFs, a portion of the capitalization grant funding must be used to provide additional subsidy in the form of grants, principal forgiveness, or negative interest loans.